The backstory for Fire and Rain is shrouded in Songwriters’ Mysterious Origins, but there’s plenty of reference to psychiatric problems. Here’s a tiny bit of discussion from the song’s Wiki page:
Taylor has related different versions of what the song is about.
In a BBC interview he said the song chronicled his experiences in mental institutions, such as his stay in McLean Hospital in Massachusetts as a senior in high school, and the suicide of a friend. The fire in the song refers to his shock therapy. Rain is the cold showers that follow shock therapy.
On the VH1 series Story Tellers, Taylor said the song was actually about several incidents during his early recording career. The second line of the song, “Suzanne the plans they made put an end to you,” refers to Suzanne Schnerr, a childhood friend of his who committed suicide while he was in London, England recording his first album.[1] In that same account, Taylor said he had been in a deep depression after the failure of his new band The Flying Machine to coalesce (the lyric “sweet dreams and Flying Machines in pieces on the ground”; the reference is to the name of the band rather than a fatal plane crash, as was long rumored).
As he was wondering what to do with himself, Schnerr’s death drove him to see beyond his own worries and realize the transience of life and his need to get back to his old friends. In other interviews, Taylor said a battle with drug addiction figured into the song.
His main wiki page has more on related issues.
Great singer-songwriter; can’t wait to see him at Bethel Woods in a few months.